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Should Your Business Accept Cryptocurrency?

Should Your Business Accept Cryptocurrency?

This is the question that’s on a lot of small- and medium-sized business owners’ minds. Should you accept this currency of the future or wait until it becomes more mainstream? Plenty of large companies, like Subway, Expedia, and Microsoft, have all decided to accept cryptocurrency recently.

Almost 90% of Americans have heard of Bitcoin, according to Cointelegraph. But, at the same time, only about 11% own it. Still, global usage is expected to balloon in the coming years. 

There are plenty of pros and cons that businesses should consider before they decide to take the leap. 

The Benefits of Cryptocurrency for Businesses 

Almost every small business owner dreads the customer who wants to use a credit card for a $1.50 purchase. Those little credit card transaction fees (usually 2-4%) can add up quickly! Cryptocurrency allows businesses to avoid these hefty fees by charging a low flat fee. Cryptocurrency transactions are also faster than traditional transactions, taking less than 90 minutes to complete on average, and come with protections against fraudulent chargebacks.  

Accepting cryptocurrency can also be useful for international businesses since cryptocurrency transactions avoid the hassle of exchange rates and the associated fees. 

Perhaps most attractive to businesses, cryptocurrency is the way of the future and can attract younger customers! It’s also pretty easy to integrate cryptocurrency wallets into POS systems, which means that there is not a significant additional investment. 

The Drawbacks of Cryptocurrency for Businesses

There are also some significant drawbacks to accepting cryptocurrency. Most of all, there’s a pretty steep learning curve. Most business owners haven’t quite wrapped their heads around this technology or the complex regulatory framework that surrounds it. 

Additionally, business owners who do not properly store their cryptocurrency can feel the negative effects of market volatility. 

Fundera summarized the pros and cons of businesses accepting cryptocurrency. Check it out! 

Pros and cons of businesses accepting cryptocurrency